Saudi investment ministry inks deal with Sana to boost entrepreneurial ecosystem in Al-Ahsa

RIYADH: The total value of assets under management held by Saudi Arabia’s sovereign wealth fund reached $913 billion by the end of 2024, representing a 19 percent rise compared to the same period of the previous year. 

In its 2024 Annual Report, the Public Investment Fund said that total revenue increased by 25 percent year on year, while cash balance remained strong and broadly unchanged. 

The analysis follows Brand Finance’s recent ranking of PIF as the most valuable and fastest-growing sovereign wealth fund globally, with a brand value of $1.2 billion.

In July, a Global SWF study reported that the wealth fund had risen to fourth place globally among sovereign wealth funds, with assets exceeding $1 trillion, slightly higher than the figure in PIF’s annual report.

“PIF’s portfolio delivered year-on-year growth of assets under management of 19 percent to reach $913 billion. Capital deployment across priority sectors reached $56.8 billion in 2024, bringing cumulative investment since the beginning of 2021 to more than $171 billion,” said Yasir A. Al-Salman, chief financial officer of PIF. 

PIF witnessed an annual average portfolio return of 7.2 percent since 2017, while the fund’s cumulative real non-oil gross domestic product contribution to the Kingdom between 2021 and 2024 grew to $243 billion. 

“Throughout 2024, PIF continued to lead with long-term vision and purpose. PIF deepened its impact and continued to drive the economic transformation of Saudi Arabia, while generating sustainable returns,” said Maram Al-Johani, PIF’s acting chief of staff and secretary general to the board. 

She further said that the fund currently represents 10 percent of the Kingdom’s non-oil economy. 

“PIF’s portfolio reflects its focus on diversifying the Saudi economy. PIF continued to invest in and establish new companies, driving forward change and bringing the total number of portfolio companies at year-end to 225, of which PIF has created and established 103,” said Al-Johani. 

Al-Johani added that PIF continued to drive the development of strategic economic sectors in the Kingdom through expanding the technical capabilities of its investment portfolios, promoting localization, and encouraging innovation.

“The 2024 results highlight PIF’s transition from digital transformation to digital leadership, with artificial intelligence and automation together becoming a vital part of operations. In 2024, PIF completed 58 digital projects, launched 15 new applications and automated more than 477 processes, enabling insights, strategy and the creation of economic value,” said Al-Johani. 

PIF said that it continued to diversify funding sources, raising $9.83 billion in public debt and an additional $7 billion in private debt. 

Affirming the financial stability of PIF, global credit rating agency Moody’s upgraded the fund’s credit rating to Aa3 from A1 with a stable outlook, while Fitch affirmed its A+ rating with a stable outlook. 

RIYADH: Office market activity in the UAE surged in the first half of 2025, with Dubai’s high-value transactions jumping 207 percent and Abu Dhabi’s leasing demand more than doubling, according to Knight Frank.

Dubai recorded 83 office sales worth over 10 million dirhams ($2.7 million) each, up from 27 in the same period last year. In Abu Dhabi, office requirements topped 50,000 sq. meters — a 110 percent year-on-year increase — as corporate expansions drove demand.

Analysts attributed the growth to strong global occupier confidence, buoyed by rising activity in business services, technology, real estate, and consulting, coupled with near-full Grade A occupancy in both cities.

Faisal Durrani, partner – head of research, MENA at Knight Frank, said: “Confidence in Dubai as a global business hub remains exceptionally strong. Indeed, this is reflected in record low vacancy rates for Grade A stock across the city, which stands in sharp contrast to many other global gateway cities.”  

He added: “The technology and trading systems sector has emerged as major driver of demand, while sustained activity from financial, real estate and business consulting firms underscores the city’s appeal to a diverse range of global occupiers.” 

Dubai leads

Downtown Dubai led the city’s office sales in the first half of 2025, with average prices topping 5,000 dirhams per sq. foot — far ahead of other submarkets. 

Business Bay ranked second, breaking the 2,000-dirham mark for the first time after posting 21.2 percent growth since 2020.

Off-plan sales gained traction, particularly in Business Bay, where 1.3 million sq. feet of office space is under development, reflecting strong investor confidence. In leasing, the Dubai International Financial Centre remained the priciest location for fitted offices at 400 dirhams per sq. foot, while Dubai Design District, The Greens, and Business Bay also saw solid rental gains.

Business services drove 38 percent of demand, followed by technology (31 percent), real estate (12 percent), and banking and finance (10 percent). Knight Frank expects 15.8 million sq. feet of new supply by 2030, pushing total stock to nearly 137.8 million sq. feet.

“The confidence in the office sector is further evidenced by the boom in high-value transactions, with the number of office sales over 10 million dirhams setting a record of 83 sales in the first half of 2025,” Durrani added.   

Abu Dhabi market 

In Abu Dhabi, business services led office demand in the first half of 2025 with a 32 percent share, followed by government entities at 9 percent. Grade-A occupancy hit record highs, driving rents higher in prime locations.

“New rental contracts in Abu Dhabi have been a primary driver of market activity this year, with transaction volumes experiencing a significant peak in January, signaling fresh demand and business expansion in the UAE capital,” said Durrani.

Musaffah recorded the strongest rental growth in the second quarter, up 68 percent, followed by Al Bateen at 64 percent and Al Hisn at 18 percent. Older districts such as Al Danah and Al Nahyan posted slight declines due to a higher share of secondary stock.

The pipeline includes Aldar’s HB Tower on Yas Island (22,171 sq. meters) and the Saas Business Tower on Al Reem Island (12,004 sq. meters), both Grade A developments aimed at meeting evolving occupier needs.